AHLA, SBA secure new Paycheck Protection Program guidelines for hotels

American hotels will benefit from an important update to the Paycheck Protection Program (PPP). Following months of collaboration with the American Hotel & Lodging Association and hotel owners across the country, the Small Business Administration issued new PPP eligibility guidelines this week.

The update clarifies that hotel owners who used third-party management companies and participated in PPP are eligible for PPP loan forgiveness for payroll expenses they paid via a management company.

The changes SBA announced will ensure that hotels facing improper loan forgiveness denials will now have their cases properly adjudicated and protect those whose loans have already been forgiven, according to the AHLA.

“AHLA heard from numerous hoteliers who were being denied PPP loan forgiveness due to their use of the common owner/management company operational model,” AHLA President & CEO Chip Rogers said in a statement. “This ran counter to the stated purpose of the program and put the bulk of hotel-related PPP loan forgiveness at risk. We are proud of the crucial work AHLA’s government affairs team did in advocating for SBA and Congress to correct this issue, and we applaud the Biden administration for making this important update to the program’s guidelines.”

For additional information and updated FAQs regarding the PPP loan, visit this page